With the turn of the century just around the corner, Dunkin'
Donuts is taking great strides toward modernizing its image.
"We made a strategic decision to change our focus from being
the No. 1 doughnut chain in the U.S. to being America's best
coffee and baked goods retailer," explains Will Kussell,
president of the 46-year-old franchisor based in Randolph,
Massachusetts.

The systemwide changes, which encompass everything from a more
contemporary store design and layout to a wider product selection
and adjustments in store operations, are already reflected in five
prototype stores across the nation. Within the next three to five
years, Kussell expects all Dunkin' Donuts' 3,400 U.S. units
to follow suit.

"When you walk into our new store," Kussell explains,
"there's a very contemporary, warm feeling that is more
like a neighborhood coffee shop than a traditional doughnut
shop."

The company's first strategic changes occurred two years ago
when Dunkin' Donuts rolled out a line of flavored coffees and
low-fat muffins at many of its establishments. And with bagels now
sharing the menu in 1,700 locations, the company's emphasis on
the overall bakery experience will ensure consumers know
Dunkin' Donuts is no longer just a doughnut shop. "We feel
we are uniquely positioned to deliver great coffee and great
baked goods," says Kussell. "No one else delivers [these
products] like we do."

With Honors

Porcelain refinishing opportunity Kott Koatings Inc. made
history in December when it became the first business opportunity
to receive the U.S. Department of Commerce's highest honor for
American exporters.

The Foothill Ranch, California-based company was one of six U.S.
firms given the president's "E" Award for Excellence
in Exporting. Established in the 1960s by President Kennedy, the
award recognizes American companies' outstanding achievements
in global markets and contributions to the U.S. economy.

Kott Koatings measures up to that standard: Founded in 1953 by
John T. Kott, the family-owned business first took its concept
across borders in 1989 and found such great success that today its
licensees have entered no less than 40 countries. Vice president
John M. Kott says he is "extremely thrilled" to receive
the award and especially to be the first business opportunity so
honored. "The president is coming to realize that [business
opportunities are] a very valuable export," says Kott.

Former U.S. Secretary of Commerce Mickey Kantor (pictured,
center) presented the "E" Awards to recipients at an
awards ceremony held at the Department of Commerce in Washington,
DC.

Packing Up

By Janean Chun

Ending a controversy that had mail and parcel franchises up in
arms (see"Franchise News," October 1996), the U.S.
Postal Service (USPS) recently announced it would discontinue its
Pack and Send services.

Many franchisors and franchisees in the industry perceived the
Pack and Send services, which offered many of the same products as
mail and parcel stores at lower prices, as direct competition from
a government agency. Yet it wasn't the outcry that halted the
USPS' plans. "It was purely a legal issue," says
Rachel Southworth, executive director of the Coalition Against
Unfair USPS Competition. "The Postal Rate Commission [PRC]
determined that Pack and Send is indeed a postal service, and if
the USPS wants to offer the service, it has to go through the
proper channels and submit a rate case, just as it does with
postage stamps, money orders and everything else it offers. It was
skirting the authority of the PRC."

Rather than file a rate case, the USPS decided to drop the
service, which had been in the test stage. "There is no plan
at this time to reinstate that product line," says Bil Paul of
the USPS.

"We were pleased with the decision," says Southworth.
"But we have to temper our enthusiasm with a dose of reality.
If at any time the Postal Service decides it wants to offer Pack
and Send again, it can simply take it to the PRC for a rate.
It's that easy."

Because this possibility looms, the Coalition Against Unfair
USPS Competition continues to pursue legislation limiting the
Postal Service from providing any commercial services that it did
not offer nationwide prior to January 1, 1994. The legislation
"would take [the USPS] out of the business permanently,"
says Southworth. "[The recent announcement by the Postal
Service] is a victory for now, but that doesn't necessarily
mean it's over for good."

Back To School

By Lourdes Aguila

Interested in attending The Franchise Center's Franchise
Management Certificate Program at the University of Texas, El Paso?
For entrepreneurs who make the grade, three scholarship programs
are available. Two of the scholarships cover the cost of the
four-week certificate program, in which seasoned professionals and
franchisees teach what it takes to start your own business or
franchise. The third focuses on shorter seminars covering various
business-related topics.

*The Referral Pool Inc. Scholarship: This $650 scholarship,
established in 1995 by program alumni Joe Prati III and Martha I.
Garcia, is given annually to individuals who want to attend the
four-week certificate program.

*The Bank of the West Scholarship: New this year, this $650
scholarship (given at least once per year) offered by Bank of the
West will go to an individual from the El Paso region planning to
attend the four-week session.

*The Dr. David and Carolyn Gough Scholarship: Center
director Carolyn Gough and husband David established this $825
scholarship for individuals interested in attending the
center's two-and-a-half-day seminar.

The seminar covers topics such as business plans, franchise law,
site selection and marketing, and includes presentations by
accountants, franchise owners and lawyers. Applicants must show
financial need and have a history of academic excellence.

Deadlines for application vary; for more information, call (915)
747-7730.

Buyer's Market

By Holly Celeste Fisk

It's an online shopping mall . . . but it's the stores
that are for sale, not what's in them. Welcome to the Business
Resale Network, an online mecca for those looking to buy an
existing business.

Since its unveiling last New Year's Eve, the site has
averaged nearly 1,000 searches per day of the 2,500 businesses it
lists for sale across the country. Searches can be made by business
category, geographical area or list price.

"Our goal is to be the largest online listing of businesses
for sale in the United States," says Gary Gardner, publisher
of Franchise Update Publications, partner with
Entrepreneur in operating the site.

Gardner hopes to have between 7,000 and 10,000 businesses listed
by June. And if all goes well, sites for Canada and other foreign
countries are sure to follow.

To browse the list of businesses for sale by owners, brokers,
franchisors and franchisees free of charge, access the site at
(http://www.entrepreneurmag.com), or call (888) BRN-2400.

Coffee Shop

Wake up and smell the opportunity: JC Java is offering would-be
franchisees the chance to get in on the coffee craze by opening
units in JC Penney department stores west of the Mississippi.

The innovative concept was introduced in a Las Vegas JC Penney
store in December. Although the prototype store is thus far run by
The Coffee Group, the Costa Mesa, California, developer of
specialty coffee franchises that will execute the master licensing
and individual sales of JC Java outlets, all 12 outlets expected to
open by midsummer are intended to be sold to franchisees.

"We're specifically looking for owner/operators, and
we'll deal with one operator in each region," says Greg
Casserly, president of The Coffee Group.

For franchisees, the demitasse of benefits runneth over:
"Our contract with JC Penney," says Casserly,
"provides franchisees with instant national identity and
distribution, high-visibility locations with built-in business, and
rents that are significantly below market [rates]."

JC Penney hopes the new outlets will revive thirsty customers
for more shopping. "If the customer has to leave to be
refreshed," points out Casserly, "[JC Penney] loses
them."